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The Bitcoin Policy Institute said it will push the US Federal Reserve<\/a> to revise how regulators treat Bitcoin under Basel rules. The group plans to submit a public comment after the Fed announces a proposal on bank asset risk weighting. The move targets a 1,250% risk weight that classifies Bitcoin as a high-risk asset.<\/p>\n Bitcoin Advocate Group Targets 1,250% Risk Weight on BTC<\/p>\n The Bitcoin advocate group confirmed<\/a> it will review the Federal Reserve\u2019s upcoming proposal and submit formal feedback. Managing director Conner Brown said the group will ensure regulators \u201cget Bitcoin\u2019s treatment right.\u201d He stated that Basel rules currently treat Bitcoin as a \u201ctoxic asset.\u201d<\/p>\n Important Bitcoin Policy Update from D.C. \ud83c\uddfa\ud83c\uddf8 <\/p>\n The Federal Reserve just announced that next week they will be issuing a public proposal for how Banks should implement Basel risk weighting guidance for America\u2019s largest banks. <\/p>\n Bitcoin is currently treated as a toxic asset under\u2026 pic.twitter.com\/3nKCfN3hep<\/a><\/p>\n \u2014 Conner Brown (@BitcoinConner) March 12, 2026<\/a><\/p>\n Brown explained that the framework assigns Bitcoin a 1,250% risk weighting under Basel standards. He said this level stands harsher than virtually all other asset classes. He argued that the rule creates barriers for banks that serve Bitcoin users and companies.<\/p>\n In a blog post last month, Brown called the classification the \u201cmost punitive classification\u201d in the Basel capital framework. He described the policy as a \u201ccategory error\u201d under global banking standards. He said the rule restricts banks from holding or servicing Bitcoin efficiently.<\/p>\n The Basel Committee on Banking Supervision<\/a> proposed the framework in 2021. It placed crypto assets in its high-risk Group 2 category. It also limited Group 2 holdings to less than 1% of Group 1 assets.<\/p>\n Brown said the weighting forces banks to allocate capital equal to their Bitcoin exposure. He stated that the 1:1 capital requirement increases costs for banks holding BTC. He added that the rule limits financial services for Bitcoin companies.<\/p>\n Federal Reserve to Seek Comment on Basel Implementation<\/p>\n The Federal Reserve announced it will issue a proposal for public comment on Basel risk-weighting guidance. The guidance outlines how banks should measure asset risk on their balance sheets. The central bank said it will release the proposal in the coming weeks.<\/p>\n Federal Reserve Vice Chair for Supervision Michelle Bowman addressed the upcoming rules on Thursday. She said the agency will implement the final phase of Basel standards in the United States. She stated the goal is \u201cmore efficient regulation and banks that are better positioned to support economic growth, while preserving safety and soundness.\u201d<\/p>\n Under Basel rules, cash, physical gold, and government debt carry a 0% risk weight. Banks do not need additional capital to hold those assets. In contrast, Bitcoin<\/a> carries the highest assigned risk weight.<\/p>\n The 1,250% risk weight requires banks to fully back Bitcoin holdings with approved capital. This requirement makes BTC more expensive to hold than many traditional assets. The Federal Reserve will accept public comments once it releases the proposal.<\/p>\n Considering a new stock? You may want to see what\u2019s on our watchlist first.<\/p>\n![\"Zuna\"\/](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/02\/zuna-square-anim.gif\")
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